Indian stock market: 8 key things that changed for market overnight – Gift Nifty, CPI inflation to US producer prices

Indian stock market: The domestic equity benchmark indices, Sensex and Nifty 50, are expected to open lower on Friday, following losses in global markets.

Asian markets traded lower, while the US stock market fell overnight after the release of key economic data.

The US producer prices rose more than forecast in November, while initial claims for US unemployment benefits unexpectedly climbed last week. Trader bets on the interest rate cut by the US Federal Reserve next week stand at over 98%, according to CME’s FedWatch Tool.

On Thursday, the Indian stock market ended lower amid volatility as investors remained cautious ahead of inflation data.

The Sensex closed 236.18 points, or 0.29%, lower at 81,289.96, while the Nifty 50 slipped 93.10 points, or 0.38%, to settle at 24,548.70.

“Investors traded with caution ahead of the announcement of inflation and IIP data and steadily cut their equity bets. There is lack of confidence amongst investors due to global uncertainty, rising US bond yields fuelling fund outflows, and persisting conflicts in the Middle East and West Asia,” said Prashanth Tapse, Senior VP (Research), Mehta Equities Ltd.

Here are key global market cues for Sensex today:

Asian Markets

Asian markets traded lower on Friday tracking overnight losses on Wall Street after hotter than expected inflation data.

Japan’s Nikkei 225 dropped 0.71%, while the Topix declined 0.85%. South Korea’s Kospi fell 0.22%, but the Kosdaq was flat. Hong Kong’s Hang Seng index futures indicated a weaker opening.

Gift Nifty Today

Gift Nifty was trading around 24,545 level, a discount of nearly 103 points from the Nifty futures’ previous close, indicating a negative start for the Indian stock market indices.

Wall Street

US stock market ended lower on Thursday as investors evaluated key economic data ahead of the Federal Reserve’s meeting next week.

The Dow Jones Industrial Average declined 234.44 points, or 0.53%, to 43,914.12, while the S&P 500 dropped 32.94 points, or 0.54%, to 6,051.25. The Nasdaq Composite closed 132.05 points, or 0.66%, lower at 19,902.84.

Nvidia stock price fell 1.4%, Microsoft shares rose 0.1%, while Adobe share price plunged 13.7%. Warner Bros. Discovery stock jumped 15.4%, Nordson stock price dropped 8.2%, while Centene shares gained 1.9%.

US Producer Prices

US producer prices rose more than expected in November amid a surge in the cost of food. The producer price index (PPI) for final demand jumped 0.4% last month after an upwardly revised 0.3% increase in October. Economists polled by Reuters had forecast the PPI gaining 0.2% following a previously reported 0.2% rise in October. In the 12 months through November, the PPI shot up 3.0% after increasing 2.6% in October.

US Jobless Claims

The number of Americans filing new applications for jobless benefits unexpectedly rose last week. Initial claims for state unemployment benefits increased 17,000 to a seasonally adjusted 242,000 for the week ended December 7. Economists polled by Reuters had forecast 220,000 claims for the latest week.

ECB Rate Cut

The European Central Bank (ECB) cut interest rates for the fourth time this year by 25 basis points (bps), and kept the door open to more. Predicting that inflation will be back at its 2% target in early 2025, and that growth will remain sluggish, the ECB lowered its deposit rate to 3% from 3.25% as expected, Reuters reported.

India CPI Inflation, IIP

India’s consumer price index (CPI)- based inflation eased to 5.48% in November, easing from a 14-month high of 6.2% in the previous month, as food prices cooled off.

Factory output, as measured by the index of industrial production (IIP), rose 3.5% year-on-year (YoY) in October 2024.

US Dollar, Treasury Yields

The US dollar and Treasury yields rose after a hotter than expected inflation data pointing to a hawkish Fed rate cut.

The dollar index, which measures the currency against a basket of six others, was up 0.375% at 106.95. The benchmark 10-year note yields were up 5.5 basis points (bps) to 4.326% and got as high as 4.332%, the highest since November 25, Reuters reported. Two-year note yields rose 2.9 bps to 4.186%.

(With inputs from Reuters)

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